S.L. 370.50 Art. 7Administrative penalties.

(1) Without prejudice to any other powers assigned to the competent authority in terms of these regulations, where a person’s conduct amounts to a breach of any of the provisions of the Cross-Border Distribution of Funds Regulation, these regulations or any Investment Services Rules or Conduct of Business Rules issued thereunder and implementing the Cross-Border Distribution of Funds Regulation, the competent authority may by notice in writing and without recourse to a court hearing, impose on such person as the case may be, an administrative penalty as follows:

(a) in the case of a legal person, the administrative penalty of up to a maximum of five million euro (€5,000,000) or 10% of the total annual turnover of the legal person according to the last available accounts approved by the management body:

Provided that where the legal person is a parent undertaking or a subsidiary of the parent undertaking which has to prepare consolidated financial accounts in accordance with Directive 2013/34/EU, the relevant total annual turnover shall be the total annual turnover or the corresponding type of income in accordance with the relevant law in the area of accounting according to the last available consolidated accounts approved by the management body of the ultimate parent undertaking;

(b) in the case of a natural person, the administrative penalty of up to a maximum of five million euro (€5,000,000);

(c) as an alternative to paragraphs (a) and (b), an administrative penalty up to a maximum equivalent to twice the DISTRIBUTION OF FUNDS)

amount of the benefit derived from the infringement or breach, where that benefit can be determined, even if it exceeds the maximum amounts provided for under paragraphs (a) and (b).

(2) Administrative penalties or other measures that may be imposed by the competent authority on licence holders or others, as may be specified, may be imposed in the form of a fixed penalty, a daily penalty, or both.

(3) The imposition by the competent authority of an administrative penalty in terms of this regulation shall be without prejudice to any other consequence arising from the act or omission of the offender under civil or criminal law:

Provided that in all cases where the competent authority imposes an administrative penalty in respect of anything done or omitted to be done by any person and such act or omission also constitutes a criminal offence, no proceedings may be taken or continued against the said person in respect of such criminal offence.

(4) The competent authority may, by means of a public statement, disclose the name of the person sanctioned, the particular breach of the provision of these regulations, Investment Services Rules or Conduct of Business Rules issued thereunder, and the penalty or administrative measure imposed. The competent authority shall withhold such public disclosure where it deems that such disclosure would seriously jeopardize the financial markets, be detrimental to the interests of investors or cause disproportionate damage to the parties involved.

(5) Where the competent authority has made a public statement in terms of sub-regulation (4), it shall simultaneously report that fact to ESMA.

(6) The competent authority shall annually provide ESMA with aggregated information about all the administrative measures and sanctions imposed in accordance with this regulation and shall upon request provide the necessary information on the application of administrative measures and imposition of penalties in the case of breaches of the provisions adopted in the implementation of the Cross-Border Distribution of Funds Regulation.